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The FTSE 250 is struggling for momentum once more as battle within the Center East shakes investor nerves. However not all UK mid-cap shares are caught within the mire. ITV (LSE:ITV) shares have been final up strongly in end-of-week buying and selling after releasing full-year buying and selling numbers.
At 83.2p per share, ITV’s share worth was final 6% greater on Friday (6 March). Analysts have referred to as the corporate’s 2025 replace a “story of grit amid gloom” — the broadcaster’s shares at the moment are up 9% over a 12-month interval.
What on earth’s been happening on the I’m A Movie star… producer? And may traders contemplate shopping for the FTSE 250 share?
Managing a troublesome setting
Issues haven’t been straightforward at ITV as robust situations within the promoting market have hit revenues. It’s additionally battling in opposition to the regular decline of linear TV as streaming providers acquire recognition. But 2025 was a narrative of resilience as a lot as anything.
At £4.1bn, group income was primarily unchanged from the earlier 12 months. That’s though promoting gross sales dropped 5% over the interval 12 months on 12 months, to £1.7bn. Adjusted pre-tax income fell by the identical share to £448m.
As soon as once more the corporate’s ITV Studios manufacturing unit rode to the rescue to cease gross sales sinking. Turnover right here rose 5% final 12 months, to £2.1bn, a brand new report excessive. ITV is ‘making lemons from lemonade’ so to talk, and is exploiting surging demand for content material from streaming firms.
It’s additionally turning the streaming increase to its personal benefit by way of its personal ITVX platform. The agency’s invested a fortune in programming and expertise, and that is paying off handsomely. Certainly, ITV has recouped its whole funding already and 4 years forward of schedule.
As analyst Garry White of Charles Stanley feedback, that is “a uncommon achievement in a streaming trade suffering from billion‑greenback losses“. The variety of lively month-to-month customers at ITVX surged 12% final 12 months, to 16.5m.
What might go flawed?
My key takeaway from ITV’s replace is that issues might have been a lot worse. Its efficiency in 2025 was one which spoke of robust execution in a troublesome setting. However income nonetheless dropped 12 months on 12 months, and 2026 may very well be an much more troublesome one.
ITV Studios is tipped for “one other 12 months of fine development” and one other market-beating efficiency. However promoting gross sales are tipped to be lumpy, with Q1 complete advert revenues set to drop 2% as advertisers wait earlier than ramping up exercise in Q2 and Q3 when the soccer World Cup kicks off.
However might gross sales right here stay underneath strain past this quarter? I feel so, with battle within the Center East threatening to ship shockwaves throughout the worldwide financial system. This might additionally see streaming firms rein in spending on content material.
Are ITV shares a potential purchase?
There’s quite a bit I like about ITV, and suppose it’s doing an incredible job of navigating the streaming age. However will I purchase its shares proper now?
I received’t, however primarily due to the FTSE 250 firm’s valuation. A ahead price-to-earnings (P/E) ratio of 13 occasions doesn’t, in my opinion, replicate the dangers going through this ultra-cyclical inventory right now. If the advert market falls off a cliff, I feel ITV’s excessive valuation might spark a significant drop in its share worth.
